tv Fast Money Halftime Report CNBC May 5, 2014 12:00pm-1:01pm EDT
amazon, seems to me you really believe jeff bezos can take over the world. how much has to do with the general market sentiment compared to how fast other things are growing. i don't know. i'm not an expert. it's a high multiple even though it's down a bit off the highs. >> and stocks are moving on the ism. >> to ism and scott lincoln. hi, scott. >> what a great day we have. welcome to a special edition of the "halftime report." right here at lincoln center in the heart of new york city. today, the stage is turned over to some of wall street's biggest investors. paul tutor jones, bill ackman, to name a few along with other top money managers to share their latest investment ideas and most importantly support a worthy cause, children cancer research. speaking of big investors today,
carl icahn will join us in just a bit for the latest of his calling out of warren buffet. this event is kicking off literally as we speak. we have traders joining us. antho anthony is joining us and kate is our sideline reporter for the day. been here before and knows exactly what to expect. good to see you. >> good to see you. >> what are you watching out for today? >> quit a few things. one of the two themes is long-short and the fundamental stock picking we've been hearing so much about a theme. we have a couple of greats in that horizon today. bill ackman i know you're speaking to later and david who called out the most recent tech bubble he's seen in 15 years did phenomenally well in april shorting a basketful of momentum stocks. one thing about einhorn, this notion he's asking for longer
confidentiality periods building up a stock position when he made a request last fall and asking essentially for warren buffet-like treatment. and about to speak any minute the person that runs fortres srs fund. and some were loathe to get out of it. it's obviously caused some pain and i'm wondering if he's rethinking his outlook there and another is paul tudor jones. he's seen some outlook and we'll see what he says in a moment. >> it will be an invest filled day and look forward to your reports throughout the day. josh brown is here and traders are joining us today. what are you watching out for
tod today? so many big investors here. >> yes. what makes this so poignant like the ira sohn conference, investors on the long and short side, this has been a year they have been able to benefit by buying cheaper stocks and avoiding or betting against we'll hear about later some more expensive stocks. in a year like last year all investment works, up double digits, it doesn't matter what you own. this year, markets essentially flat and stock picks actually helping as dispersion and correlation drops. >> we wonder if you will hear, as kate referred to, this continued bubble talk from some big investors. you're hearing from the einhorns of the world, maybe cautionary words from mr. dan lowe out at milkin, mentioned by many of the big investors there. that's going to be key to hear from these folks whether they
agree. >> that's right. i'll tell you that a market like this you're rooting for trade and whether you have a shot to outperform the s&p. you really didn't have a shot last year. this year you absolutely can. the stocks not working are the one the long term hedge funds might find themselves on the short side >> today, when warren buffet is an investor of omaha, we have the oracle of omaha. jay is running the tampa firefighters pension fund and here with us. welcome back to the halftime show. >> thank you. i hope i'm too young to be an oracle. my father qualified. >> great to have you here. what are your thoughts on the market. >> it has.
we continue to think the monetary thing is going to dominate in terms of global accommodation, we think they're very focused on targeting nominal g&p. in europe the currency and deflationary that keep hanging around. japan has to counter this increase with monetary easing. china is faced with falling producer ppi crisis and our current issue with japan. with that broad backdrop in temps of global accommodation is a positive. when you look at our market in the u.s., look at the long bull markets, five years plus in the last 30 years, three of them, this is the fourth, we have a lot of similar characteristics in terms of relatively steel curves and skepticism.
the international situation could do some. we can do fine here. it's not a raging bull, more of slow bull where the market can approximate earnings growth plus dividend. >> investors raised the flag to a potential bubble in certain aspects of the stock market. what are your thoughts on that? is there a bubble in pars of the nasdaq specifically? >> we think the bubble is on the fixed income side and bond side. as far as the nasdaq i like these rolling valuation corrections we had in certain areas like biotech and social media. the bond side is a different animal. as long term top down investments we think the overwhelming theme the next 10 years is how the fed unwind their balance sheet. there's a confederation of inflationists developing that want higherinflation, including yellin and our long term value
price text our clients from that. >> interesting your stock selections you made a number in the past. you certainly must be bullish.on the u.s. globally if you're picking industrial cyclical names such as honeywell and three m. talk to me about 3 m. why do you like it here? >> we're looking for premiere industrial companies and they have met the bill the past few month, ability to outperform the market. they have a management more shareholder friendly. you look at the dividend -- they just decreased the dividend by 35%, reduced share count iv% with stock buybacks. at its core a highly innovative company with robust flow. we like that. >> i'm curious on something like that and your industrial picks, do you need the international markets to cooperate?
we saw the fourth pmi in a row down for china overnight and latin america seems to be out of this cycle entirely. can this cycle continue to work if the united states stays where it is and get no cooperation at all overseas. >> if you look at 3m prosections looking out, and management has become so much more share holder friendly, so diverse, in over 70 companies. china, you mentioned china, if you picked one major u.s. company in china i would say 3m. m i would say it's china and the u.s. very shareholder friendly. >> we will have active investors in the house here today and you're a long term investor. do you own coke shares?
snow we ha >> we have -- my father actually purchased coke for a a shadolla share in the '70s. we favored pepsi-co over coke particularly because of the snack food franchise. coke, i think the delusion issue is legitimate to be talking about raised recently. to me, at any rate yankees the main problem with coke is the product. i think they have a 20th century product in a 21st century whole foods type of world. i think looking out, i think the core product is more of a problem than this delusion to date. >> what's your take on activism in general, long term investing what some call short termism? >> i think there is a place for is. it can be healthy in terms of issues and management can become stodgy at times.
one of the reason these are on our screen right now is the management. we think it is exceedingly important in the real-time environment. when they're creating double digit earnings increases it can mask inefficiencies in operating. honeywell has proven they can operate in that environment >> thank you. look forward to seeing you again. jay bowen. >> good to see you. calling out to warren buffet. we talk to him live on cnbc coming up. at 3:30 i will be talking to icahn's sparring partner alle d allegedly his sparring partner because apparently they have made up on this special edition of the halftime live from the investment conference in new york city.
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managing partner of orbimed. nice to see you. >> thanks. >> what's your take on pfizer? >> pfizer is a big story. we have numbers in the first quarter. i think what a quarter is, january and february and march. not great weather month anyhow. numbers in the first quarter were poor. sales light around the board. this company does not look like it's growing, in fact, it's not growing, breaking into three pieces gives you things that don't grow. we're rather skeptical about management's sub subsequent on the conference call optimism all is going well. we would rather consider the bid for astrazeneca as not plan a but plan b. let's get something on the books
a better chance for growing. >> you're not for it? >> no. i think this is management's plan for astrazeneca. it's a good bid. we think it will succeed. astra will fight it, has the government helping them. the board has rejected it. we rather believe pfizer will fail because shareholders will cave. they want the higher price. >> you are an owner of pfizer. it sounds like you have a bad taste in your mouth from this quarter? will you continue to hold those shares or lighten up your position? >> we won't lighten up our position on three months of the year, a five year story of renewal at pfizer in part with astrazeneca. we're not giving up that fast. >> your top health care picks, roach and another. you want to tell us why you like them? >> let's go with roche first.
they dominate the world's cancer market. they have a great future, a few patent expirations coming. nothing too awful. we would go with roche, a nice big name. the other is a specialty situation. they recently reported data show their new drug candidate saves lives. the details of that data on in termune. it will be presented at the american thoracic society and think it will make the stock move than it has already moved up about 100%. >> steve weiss has a question for you. >> sam, let's talk to two other names in the news. valiant and endo. do you have positions in those and what do you think of those two? >> we have a position in one of the valiant targets. we have a good-sized position in alleg
alleggan. both are tax inversions, shopping for a lower tax rate somewhere in the world. that will continue until the u.s. government puts a stop to it. we rather like the come inflation of vallian and allegan but don't have a curved positioning. >> that's interesting. do you think the government is going to change the policy around tax inversions all over the headlines of late obviously because of pfizer and what some others are doing? >> tax inversion is a weird characteristic of things. that's what everybody calls it. shopping for a lower tax rate. the way for the united states to get away from it is cut the tax rate for corporate profits. high tax rate for corporate profits means companies go elsewher elsewhere. >> sam, my question, what we're talking about, not talking about drugs or pipelines, talking about mma, has a way of inflating revenues and really
not strategic in such a big way. it is still. more financial tax, doesn't that lead to typically the end of a cycle? >> mna is usually short term to intermediate term accretive to earnings per share. that's why companies do it. have a higher pe, buy a company with a lower pe, adds to earnings per share or borrow money right now costs close to zero and they get a better earnings yield on what they buy. mna works and manufacturers earnings per share comes to an end unless you have synergies. synergies are often simply a reduction of head count. sometimes they are marketing synergies where you build a better company and you move forward. mna has been around for decades, maybe centuries. we think it will continue and good for shareholders.
>> sam, be well. we'll talk to you soon. >> sam isaly, again. you have a thought about pfizer in general? >> the stock is cheap, obviously slowing down and looking at creative things to do. people are primarily focused on the astrazeneca deal. i do think the deal gets done. if it does, it will be very positive to them as relates to taxes and also open up a broader issue as it relates to corporate taxation in the united states. overall very positive upside to pfizer. >> what asaly is referring to is biotech, seeing companies that don't even have a pipeline yet coming to market. i think you have to separate from the pfizers of the world to small non-commercial biotechs i'd stay away from. coming up. target's ceo is unexpectedly out. what is behind that move and what happens now? courtney reagan will break it all down for us. then, carl icahn doesn't
like the way warren buffet is handling things on his coca-cola state but buffet has thoughts on i kaun, too. before we go to break, we look at stocks hitting all time highs today. conocophillips and exxonmobil. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro.
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are, nicely below 2. troubled economy debt like spain coming way down to almost 3%, it makes it very difficult for yield and for the demand to waiver on the 10 year. i'm getting out of there to make more money elsewhere in stock. did you say soft bank? sn>> soft bank as well. >> soft bank, the term is well played as to what the terms alibaba means to these companies. soft banks will do fine. i have to play a little bit of catch johned but more beta in the portfolio. i don't see anything wrong with either, just not my time frame >> how about this target's chairman ceo gregg steinhafel is out effective immediately. courtney is at headquarters with the latest on this developing story. what do we know now? >> interesting how this happened, the timing. gr gregg steinhafel's resignation was a surprise to almost every
analyst. sure, the holiday season breach was a huge black eye but in earnings updates from the company it seemed to be mostly in the rear view mirror. steinhafel's resignation is causing a lot more questions. have stocks not record. is there a bigger issue? taking the resignation as a sign target's many problems are deep-seated and we now fear the company will be even more rudderless. the suddenness of this announcement and lack of planning leads us to believe it was last minute. in a letter to target's board, steinhafel said the last several months have tested target in unprecedented ways. he says with several key milestones behind us now is the right time for new leadership at target. john mulligan stepping up to fill as the interim ceo.
it may be a near term negative mulligan doesn't have m merchandising experience. and increases the probability the share buyback will continue. target has a history of hiring from within, they hired someone to search for the top job outside. even though we haven't seen it before, the big question is, who will it be? scott. >> courtney, quickly, we use resignation, can we use that in quotes? was he forced out or fired? >> we have a letter that has his signature on it from the board, says he believes it is time for new leadership. it appears he has chosen to resign. we don't know if it was at the insist stance of the board. >> what do you think? >> i think the reaction to the share price. when was the last time you saw an s&p 500 company with the ceo
resign you didn't get a pop out of the stock. that seems to be the new regime. people get excited about leadership changes. in this case people are a little bugged out, don't understand the timing. as courtney issued, looks like those issues were in the rear view especially credit cards. >> maybe the candidate issue is in front of them and worse than people think. >> there's a huge gap below the 59 level. a lot of guys talking about it better hold 60, and that may be a self-fulfilling prophesy. >> it's not a surprise at all. you have somebody not a merchandise merchandiser. >> you don't think reaction is a surprise? >> the ceo is a merchandiser stepping down. the security breach may be countered it's turned and clearly now this is a signal it's not. i wouldn't be surprised if they bring in a merchandiser at this
point and the ceo is temporary. >> ron johnson is available. and will be. >> will be for a while. stand by your phone, ron. >> mike, meantime, revealing his best. dominic has details. what's he saying? >> he's talking about what's happening with brazil. his idea he's pitching again. mike saying brazil remains a compelling investment idea. some things he talked about basically, it's so bad in brazil, it's good according to mike novogratz at fortress and pessimism is an all time high and presents a good opportunity to enter brazil. mike says brazil is so bad it's good, now talking about brazil as an investment opportunity. pessimism may lead to an investment opportunity. he's just wrapping up there. chris is taking the stage right
now and we'll bring you details of new ideas there. novogratz of fortress likes brazil. over to you. >> we look forward to this comment. >> i will give you a way to play it. gol, brazilian airline cutting back on capacity. the ceo of delta sits on their board. novo thought so much of brazil, you looked a his shirt >> pretty casual. >> an ugh any shirt had the brazilian flag on it. i think they will do quite well. capacity coming out, prices growing up, world cup. >> world cup is in about a month, an interesting pick. it is the op-ed that has wall street buzzing. legendary activist investor carl icahn says warren buffet is wrong about coke. up next we will speak live to mr. icahn about his bold stand when the halftime returns live from the sohn investment conference live in new york
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percent and half on news ira sohn hedge fund manager saying this is one of this is best long ideas. he says this is a great opportunity, a company that has pricing power. he likes the way moody's stacks up. they have 115 year history of 5% pricing power. moody's, chris says moody's one of his best long ideas and you can see the stock pop on that good news. back to you. >> thanks. want to give a quick comment on moody's? >> long time buffet name went through massive restructuring after the financial crisis and now poised to go higher because it is a cheap stock. >> you've known chris well. >> i've known chris over 20 years. very smart investor in this area. i'm in a few funds and i'm sure anthony is, too, skybridge that own moody's that have the story anthony just stated. it's interesting, contrarian, you think of moody's, you think
of old media, it's ripe. >> it's not often warren buffet gets called out by a fellow billionaire investor. that's what happened over the weekend in an op-ed published in "barron's" and carl icahn saying he was wrong to abstain in the vote for the employees compensation plan. >> great to be back. >> you as well. why did you feel compelled to write this op-ed? >> there are a lot of problems in our economy that worry me and i think worry warren buffet and charl charlie munger. i didn't go to the conference or annual meeting. i think warren makes great points about the fact that we may have another major disturbance because of derivatives.
the thing that turn this economy around, can turn it around and can save it is not necessarily the fed, but it's what i think, at the risk of being immodest i approve without doubt if you go into these companies, go in long term, not short term, and get involved in korcorporate governe and not micromanage but look at the big picture, make ceos accountable, get them off the golf courses if they're on the golf course too much. let me make it very clear there are very good ceos and very good boards. if we can do that and call them to the carpet like you do in a private business, you will do tremendous good for your economy. you're going to make your economy much more productive. over the last 13 years we proved that over and over again. you can't look at these companies as a fraternity. i listened to buffet this morning a little bit.
it's amazing we sort of both agree in one or two things, where warren said, you know, i don't want to state the words because i don't have them written down but basically the board is collie gal and it's sort of a social thing and it wouldn't be good to fight coca-cola because you don't want to show -- you don't want to disagree, you don't want to say no. that's, to me, completely wrong, not what a democracy is about like saying in congress we shouldn't say one thing or disagree. >> carl, let me interrupt and forgive me for that. >> sure. >> buffet -- buffet is and did hold ken accountable, he just did it in private. he made a phone call clearly and they spoke. buff buffet voiced his displeasure over the executive compensation
plan. what's wrong with doing things in private rather than public if you get the result you want ultimately. >> you don't get that result on boards if you do it in private. i don't see coca-cola changing their package. i don't think it's been effective. interestingly, warren said -- it was mentioned on tv this morning, something about that the only way to fight these guys is to embarrass them. buffet said that in '09. we sort of agree on that. what i'm complaining about is it should be -- not coming from buffet -- don't stand up to these guys. i would also say that i don't agree with, you know -- i really li like -- i thought russ sorkin was right on to mention what he did today. we are not a disturbance to these boards. we go on these boar boards -- obviously the boards
don't like the fact we criticize them. some of the boards don't like the fact we criticize twhat the ceo does. and we get on and get a hell of a lot done. look at morris. i read you a letter i didn't ask them to write. i i fought with them quite a bit at the beginning and morris has gone from 37 to close to 95 or something like that. unsolicited he wrote a letter when i was doing the ebay fight whatever you want to call it. he wrote to them, said writing to donaghy, i can speak only from our experience, we have found his participation, meaning me, and that of his nominee to be intelligent and useful and i have come to enjoy a genuine personal relationship with carl although cameron is really quite different. i'm glad buffet said he loved me
and i actually love buffet but i do agree buffet is a real lovable guy. i really do think -- i know you will laugh at this, i think i'm a likable guy. i always got elected in school to offices. it's not that i'm not likable but maybe i do have a bit of a fighting gene. i think it's extremely important we do what we're doing here. >> to that point, and let me just say, my colleagues are going to be flattered you enjoyed what they had to say this morning on "squawsquawkbox. when buffet was on this morning i want to play you something he said about you and the way you go about things in your activ m activism. i want you to react to it on the other side. here's warren buffet on "cbs this morning". >> you're formed by decades earlier. people like to get along with other people. most people. a few people -- carl doesn't have that gene quite as strongly as others. i love carl.
but he may enjoy -- he may enjoy a battle. some people do that. generally, you don't get invited on boards if you have a person that actually loves a fight. >> so carl buffet saying people like to get along with other people, most people. carl doesn't have that gene quite as strongly as others though he does say i love carl, he may enjoy battle and some people do. you don't generally get invited on boards if you like to fight with people. what's your reaction? >> i agree with a lot of what he said not getting invited to boards. i don't generally get invited. i get invited back interesting. you don't get invited to a country club if they think you're going to battle with them. a board shouldn't be a country club. that's my whole point. i certainly, shall we say, don't seek love from a lot of people. i can understand him saying that. but -- maybe i do have a fighting gene. but i think it's very important
for our society today that you have guys like me. at the risk of being modest, not myself necessarily, who are willing to stand up. that's how societies progress. we wouldn't have had the american revolution if everybody just wanted to get along with the establishment in england. you wouldn't have had abe lincoln and all the great presidents. you're looking at great presidents, i think they all have the fighting genes, the great ones. i'm not going to argue with warren about the fact i have a fighting gene. you know, what's amazing, though, i agree -- i listened this morning to what he said, and i agree with what he's saying, that the boards are sort of co-lie liecolleagual, the bo sort of fraternities, not those words. the only difference is i think this is a terrifying situation for our economy and our future, the fact we can make so much money by turning these companies around proves it.
we are not being productive because of this. as ceo rs with many exceptions u need te right guys to run these companies and interesting thing is you get invited back when you do it. we have a difference perhaps in -- in what you should do on the boards, but being that said, it's sort of interesting because warren said in '09 or something like that, you have to -- you have to be effective you have to real really -- i wrote the words down, you have to embarrass these guy, these big shots, he said. according to sorkin, according to ross sorkin, he read a quote you should embarrass these big shots. i don't think warren answered that quite effectively. this fighting gene you say you may have, much has been made over the last week or so with you and bill ackman making up over the phone. do you want to tell me how all
that came about and how two guys who brawled out in the open on this very program more than a year ago have managed to make up? >> well, you know, he called my office, and he just said, tell carl i forgive him. you know, you can say i have a fighting gene, maybe i do, but i don't enjoy grudge fights. i don't enjoy gratuitous fights. i fight to get something accomplished. my fighting with akman is really sort of gratuitous fight at this point. he called up and he said that. then i called back and said, you know, to forgive is blessed, sort of laughed and i said, i forgive you. then we got talking about what i think are more important items about corporate governance. i think it's so important in this country to change what's going on. this whole arena. i will say bill ackman is right
up there in trying to change it. the guys that i think are responsible for it, i don't think they're bad people, but, you know, they also have their agendas like marty lipman that gets tremendous ease from these guys he tries to keep in trench. he's not a bad person. it's the old thing the enemy of my enemy is my friend. i don't need the money anymore. i'm doing this and i know maybe it sounds corny to you because i really think that this country could still be as great as germany. i grew up on the streets of queens and it's done aiate thing for me and i'm trying to -- i think my legacy is to try to change the situation. i don't give a damn too much who like mess or doesn't like me as i'm doing it. i guess warren is a little right about that. if i really cared about being in the social order or being in the establishment, you know, i wouldn't do what i do. but the point is -- >> i'm reminded -- i'm reminded, i guess, of that famous saying
of yours, there's war and then there's peace. there's war again and peace again as well. i know you've said that on many occasion to sort of describe these situations. let me ask you before we run, carl, about apple quickly. they split the stock j raised the dividend, increased the buyback. do you think you were directly responsible for any of those? >> i like tim cook. that's not one my warring gene is manifested. i think he's doing a good job. i personally think apple, as you know, we said -- that's an interesting by the way if i could take two minutes to talk about because i might be making news in the future, maybe you heard it first here. we recommended on twitter apple at 470 or something like that. it's up 100 points. i haven't sold a share. i like to feel tim listened to me. we had a very nice dinner and maybe he did listen and maybe he didn't.
i do think tim is going in the right direction and hopefully there are going to be some great new innovations coming out, which i like. i take a little umbrage to what jeff ruben said at the mel ckin conference, who i considered a friend up until now, who came out gratuitously said carl icahn's use of twitter to promote his investments was damages because it encourages everyday investors to buy stocks without looking at the fundamentals. there's a lot wrong with that statement. to begin with he didn't do his homework. i never used it to promote my investment because i never sold it. in fact, i keep stocks for very long periods of time. it was really done as almost a gift, you know, saying, this is a great company, people, you keep -- people keep asking me what we buy. it's going to be interesting he goes on sort of like he's sort
of like one of these aristocrats, the 19th century saying poor people shouldn't have money, they don't know how to use it. here, he's saying everyday investors, i think >> isneeringly, who should play them? guys like jeff. if i like apple i buy and interestingly he's recommending herbal life. he's okay to buy and get 20% from the little guy that can't understand or shouldn't be allowed to invest. i take a little umbrage in that. i think that was a sort of gratuitous statement first of all shows he didn't do his homework. the news i may make and i'm thinking about doing, just to prove this is wrong and to prove we're not shorted terming this, that if i go on twitter i'm thinking about coming on and saying, like in apple, i could have said -- really could have said this when i did apple, i'm
long apple and guaranteeing and pledging i'm not going to sell it for a year and that will take away all this stuff i'm trying to promote. >> is that what you're saying right here and right now? >> i'm saying right now that i'm thinking very seriously of a new paradigm with us, where in certain cases we're going to go on twitter and say we like the stock and i'm pledging i'm not selling it for a year, so you little guy, you don't have to pay jeff ubin 20% for doing his great research. you know, i'm not here to really criticize jeff. i always liked him. i always felt he was a friend. i thought it was very gratuitous to make those remarks without at least calling me and doing the homework and realizing we haven't sold one share of apple since 470 so anybody that bought that i would dear say -- i would challenge jeff anybody who did that did a hell of a lot better without paying him 20% by buying
that. let's look how that person did on an annualized basis compared to how he did in his fund although i'm sure his fund has done quite well in this market. i would challenge that. i take -- you know, it's not jeff uban, i sort of like the guy. what i am saying is that we have the wrong approach here. the little guy should be allowed to be in the market. he should be allowed to follow good investors without having to pay a fortune necessarily although i'm not again against -- there are some very good activist investors. warren buffet and charlie munga, charlie, i also respect a great deal mentioned short termism here. yes, there are funds -- there are activist funds that take advantage of it and are short termist. don't throw the baby out with the bath water. so i would say that -- >> carl -- >> there may be some news from me on that score, scott, in the
future. >> we will look out for that. i say you're not ruling out buying more apple down the road either? >> i'm not ruling out buying it. i still think it's very undervalued. i am saying that in the future, i think to quell some of this on some of these, going to come out on twitter -- we're not going to do it on twitter necessarily, but you should stay tuned, because some of these that i recommend, i recommend because i like to see the little guy buying stocks, and getting involved in corporate governance, getting involved, not just sort of walking away from it. >> i understand. carl, i really appreciate you joining us first on cnbc. i'm going to speak with bill ackman later today, so you want to stay tuned for that and i'll tell him you said hello. >> just give him my best. i'm sure we'll be -- he and i will be talking soon. thanks for having me on.
dom, what do you see? >> scott, the big name after the bell has got to be american international group. the insurer is expected to post a first quarter gain on revenues of 9.36 billion. ahead of this news, you can see the stock is trading up about a quarter of a percent. aig's ceo will be on live "closing bell" today to discuss his earnings report. that would be a big must-see interview. check out directv. the street is expecting gains on sales of 7.9 billion. you can see it up about half a percent. out tomorrow, nuskin looking to earn on 657 million in sales. down about a percent in today's trade. mosaic as well to report tomorrow morning, looking for a gain of 69%, right now those shares down about two thirds of 1%. on a final note here, of course, disney will report tomorrow after the closing bell as well.
also some updates here. hedge fund manager -- i should say hedge fund/mutual asset manager jeffrey dunlocket is on his stage giving his ideas. he wants to short single-family housing. he says single-family house seg overbelieved and overrated. he says we seem to be on the cusp of existing home sales now negative, new home sales also falling. affordable was so great -- if affordability was so great, why was last year's rate rise such a contributor to home sales dropping. you can see apparently bearish about what's happening with the single-home market. that's his idea. he wants to sell or short that single-family housing market. back over to you guys, scott. >> thank you so much. you guys want to comment there. the data in housing lately has been pretty terrible, don't you think? >> we've been making a lot of money -- i they have jeff is right on the short term that the
market has slack in it, but the beway to play that, in our opinion is through recent demplgal mortgage-backed securities. >> this is new reality, loaning standards are much, much higher, and i don't think you see the crazy. i think it's an interesting call, and very interesting economic call. two pillars are housing and auto sales. if we lose it, i wonder what happens to the market. >> jeff was saying he sees the specter of deflation being a greater risk near term, the skybridge team also thinking that. >> we're going to get him to expand that when he comes off that stage. he will speak with us live, likely during "power lunch." i'll ask all of you to stay tuned for jeff gundlach. where he sees rates going, very outspoken to where the ten-year is heading.
you'll hear from him. we also want to tell you about another big event next week. that of course is the skybridge alternatives conference, also known as s.a.l.t. it's a four-day event features some of the most powerful names in investing. anthony, real quick. >> we're very excited. this is valerie jarrett coming from the white house as well, and president frank underwood. >> that's all for us. again jeff gundlach in a matter of moments. "power lunch" starts right now. halftime is over. "power lunch" anded second half of the trading days start right now. >> scott, thank you very much. we'll check in with you in just a minute a lot of volatility. the dow down triple digits. a lot of stocks at all-time highs do you beware of them?